South Indian Bank Joins Blockchain Wave; RBI Cautions Against Bitcoins Again!
After SBI’s biggest push regarding blockchain usage in core banking operation, it is South Indian Bank’s turn to ride the blockchain wave.
After SBI’s biggest push regarding blockchain usage in core banking operation, it is South Indian Bank’s turn now, to ride the blockchain wave.
This way, South Indian Bank has become India’s 5th bank to use blockchain to performing some of their banking operations. Earlier, ICICI Bank, Axis Bank, SBI and YES Bank had announced their blockchain related plans.
Meanwhile, the craze and popularity of bitcoins in India, especially after it hit the crucial $10,000 mark is increasing at an incredible pace. Such is the traction generated, that RBI had to again issue a warning against buying or selling bitcoins in India.
Considering that blockchain is the force behind major cryptocurrencies all over the world, including bitcoins, shouldn’t RBI announce some plans regarding its official usage?
We try to read between the lines here..
South Indian Bank: We Too Will Use Blockchain Now!
South Indian Bank, which has a major presence in Middle East and African countries, has announced that they will now use blockchain technology for faster overseas remittance and payments.
They have partnered with a leading currency house in West Asia to carry out blockchain based remittances from Middle East to India, which will now take mere seconds, compared to 3-5 days earlier.
The pilot transaction was successfully processed for money transfer from UAE to India, and now the process will roll out for all transactions.
As of now, South Indian Bank has partnerships with 4 banks and 34 exchange houses across Middle East and South Asian countries, which would now ramped up to greater exposure and network.
SBI, along with Axis Bank, ICICI Bank, and other 5 banks have already created a consortium which has pledged to use blockchain for providing more safety and security to cross border banking operations, and more banks are expected to join the blockchain bandwagon, very soon.
Infosys has already launched a banking platform for using blockchains.
RBI: We Repeat, Don’t Buy Or Sell Bitcoins!
Meanwhile Reserve Bank of India has once again issued a stern warning for all Indians, asking them not to buy or sell bitcoins in India, as it may lead to money laundering cases.
This is RBI’s 4th warning against usage of bitcoins in India.
In an almost repeat message, RBI has reminded
“users, holders and traders of Virtual Currencies (VCs) including Bitcoins regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with such VCs.”
Most probably, this new warning issued by RBI was planned after the value of bitcoins crossed $11,799.99 mark at Luxembourg-based Bitstamp exchange this Sunday and there was a social media frenzy regarding bitcoins.
In February this year, RBI had warned against using bitcoins, citing similar risks involved. In March this year, RBI threatened to invoke anti-terrorism laws and anti money laundering laws for using bitcoins for any purpose.
Last month, RBI again cautioned against bitcoins, but admitted that blockchains have a bright future in banking operations.
Supreme Court has already asked the Centre to respond regarding a plea seeking bitcoin regulation in India, something which cannot be done technically, anywhere in the world.
We will keep you updated, as we receive more information regarding the future of bitcoins in India.